The Question

Is this the last leaf?

The much hated HST (Harmonized Sales Tax) is in the news again. Apparently the wording of the referendum question has been proposed and will be debated in the legislature in the spring before the final draft is put to a vote, when a simple majority will either repeal the tax or guarantee its survival. Here is the wording: Are you in favour of extinguishing the HST and reinstating the PST in conjunction with the GST - yes or no?

At first glance it is straight forward, but there are unanswered questions remaining. Will the PST and GST be applied to the same goods and services as it was prior to the HST? What will the rate of PST and GST be?  I would not vote either way on this question until those two questions are answered. From the start, the biggest problem with the HST was that it was applied to  items and services across the board when it was introduced, resulting in a larger tax burden to consumers of goods and services. Will we be better off if we revert back to the old system? Only if the overall tax burden is lessened.